Refund procedure governs excess duty; earlier overpayment cannot be set off against duty on a later consignment.

Excess duty paid on earlier clearances could not be adjusted against duty payable on a later consignment cleared without duty. The Tribunal held that, even where the goods moved under one contract and duty had already been paid on prior consignments, any excess payment had to be recovered through the prescribed refund mechanism. Offsetting that excess against a subsequent clearance was not permissible, so clearing the later consignment without duty was unjustified. The demand on the third consignment was therefore upheld and the assessee's contention rejected.

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Issues: Whether duty allegedly paid in excess on earlier consignments could be adjusted against duty payable on a later consignment cleared without payment of duty.

Analysis: The goods were cleared under three gate passes in execution of one contract. Duty had been paid on the first two consignments, but the third consignment was cleared without duty on the plea that the entire duty liability on the contract had already been discharged. The Tribunal held that excess duty, if any, had to be recovered through the prescribed refund mechanism and could not be set off against a subsequent clearance. Clearing goods without payment of duty was therefore not justified.

Conclusion: The assessee's contention was rejected and the demand on the third consignment was upheld.

Final Conclusion: The appeal failed on merits because excess duty paid earlier did not entitle the assessee to clear a later consignment without duty.

Ratio Decidendi: Excess duty paid on an earlier clearance cannot be adjusted against duty payable on a later clearance in lieu of following the statutory refund procedure.

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